Hicks Sports Group defaults on $525 million in loans

Hicks Sports Group defaults on $525 million in loans

Monday, 06 April 2009

See update to this story at more.impactnews.com/4005.

Hicks Sports Group, which owns the Dallas Stars, the Texas Rangers and Cedar Park Center partner Hicks Sports Marketing, intentionally defaulted March 31 on $525 million in loans.

Owner Thomas Hicks told The Associated Press he made the move in an effort to negotiate with lenders.

The loans in question are related to the Stars and the Rangers. HSG stated in a press release that it is involved in negotiations with the lenders regarding debt terms and covenants.

Management and officials at HSG said they are hopeful the company can negotiate with the 40 lenders involved in what it called “this challenging economic environment,” according to the release.

HSG officials referred to the situation as a “business dispute” that would have no affect on the operations of either team.

Hicks told the AP that he was looking for limited partners to purchase stakes of up to 49 percent of each team. Hicks owns 95 percent of both teams.

“These issues relate only to HSG,” Hicks stated in the release. “Like so many other companies and institutions, HSG has been impacted by a global credit crisis which no one could have anticipated. The company is not asking for additional money; it is only asking for full access to the interest reserve account and revolving credit line as well as some amendments in the debt covenants.”

Community Impact will update this story as more information becomes available.